Fair Isaac Corporation Q3 2026 Earnings Recap

FICO's shares fell 14.7% after the Q3 earnings report as investors reacted negatively to the Software segment's poor performance, marked by a 25% decline in non-platform revenue, and cautious indications of deceleration despite growth in Scores and platform revenue.

Key Takeaways

• Total Q3 revenue grew 26% year-over-year to $674 million, driven primarily by a 41% increase in Scores segment revenue to $459 million.
• Software segment revenue showed a mixed picture: platform revenue surged 66%, but was offset by a 25% decline in non-platform revenue, suggesting challenges in legacy or non-core offerings.
• GAAP net income increased 30% to $237 million, while non-GAAP net income rose 31% to $277 million; GAAP EPS grew 41% to $10.45, non-GAAP EPS climbed 42% to $12.18.
• Free cash flow for the quarter reached $370 million with aggressive capital return activities, including a record $1.96 billion in share repurchases.
• Despite positive developments in credit scoring products and adoption programs, the cautious tone around software growth and sector-specific headwinds likely weighed on investor sentiment.